Mortgage Rate Down to March Level

Mortgage Rates have dropped in eight of the last nine weeks. Continuing slump in housing market and indications of slowing economy are main reasons behind this downward trend in mortgage rate.

According to Freddie Mac's weekly survey, the 30-year fixed-rate mortgage averaged 6.31% in the week that ended today -- down from its 6.40% average last week. At this time last year, the loan averaged 5.91%. The 15-year fixed rate averaged at 5.98% this week, again a slide from last week's 6.06%. At this time last year this rate was 5.48%.

Rate for 5-year Treasury-indexed hybrid adjustable-rate mortgages (ARM) averaged at 6.00% decreasing slightly from last week's 6.08%. This rate averaged 5.44% a year ago. The 1-year Treasury-indexed ARMs have an average rate of 5.47%, down from last week's rate of 5.54%. At this time in 2005, the 1-year ARM averaged only 4.68%.